Fewer homeowners are upgrading their homes
FNB’s 2018 Estate Agency Survey reports that estate agents perceive the level of home upgrades to be decreasing. With South Africa’s current weak economy, households are feeling financially constrained, but not to the point where general home maintenance is affected significantly.
The 2018 FNB Estate Agent Survey has reported that estate agents in South Africa currently perceive overall home maintenance and upgrade levels to have decreased in the 1st half of 2018. It is important to not that this is a perceived decline in the level of upgrades to homes as opposed to a weakening in general home maintenance levels.
The agents surveyed gave their perceptions regarding levels of home maintenance and upgrades, and reported the following changes:
- Owners investing in a high number of improvements and renovations showed a significant decrease from 22.85% of total agents in the 1st quarter of 2018 to 15.5% of agents in the 2nd quarter.
- Owners maintaining their homes well and making some improvements rose from 37.35% of agents in the 1st quarter of 2018 to 41.85% in the 2nd quarter.
- Owners who aren’t spending a lot on improvements but are still maintaining their homes well rose from 28.65% in the 1st quarter to 30.15% the 2nd quarter of 2018.
- Owners won’t regularly maintenance their homes and fixing issues rose from 9.85% of agents in the 1st quarter of 2018 to 11.85% in the 2nd quarter.
- Owners are doing little to nothing to maintain their homes declined from This category actually receded form 1.85% in the previous quarter to 0.85% in the 2nd quarter of 2018.
Whether talking about property in Soweto or property in Sandton, households are cutting back on bigger upgrades, but not yet cutting back on general home maintenance to the point where an entire area begins to deteriorate. While households are becoming increasingly constrained financially when it comes to maintenance, and cutting back slightly on home upgrades, the situation is still perceived to be far stronger than it was during the 2008/9 recession.
